JobKeeper ends soon: what to do if you’re worried about your business

If your business is struggling with cashflow or other issues at the moment, it’s time to have a chat.

Now is a good time to take stock and think about your business more broadly. It’s likely that any underlying issues have been compounded by the COVID-19 crisis, magnifying and accelerating the impact of these issues.

If you are specifically worried about how your business will make ends meet without JobKeeper, you should proactively find out your options. The team at pmwPlus are here to help. We’ll make sure you have a solid understanding of your business’ current financial position so you can make informed decisions and we will work alongside you to help weather this storm.

Below is some important information relating to JobKeeper:

• The final JobKeeper payment will be processed in April 2021.
• If you haven’t yet enrolled there’s still time. If you’re eligible you can enrol at any time until the end of March 2021.
• If you already receive JobKeeper payments for your eligible employees, you don’t have to do anything when the program closes.
• However, you will need to complete your final monthly business declaration for March by 14 April 2021.
• If you still need assistance you may be eligible for the JobMaker Hiring Credit or other help.

Claiming the JobMaker Hiring Credit

The JobMaker Hiring Credit is available for eligible employers who create new positions for eligible young people between 7 October 2020 and 6 October 2021.

To receive JobMaker Hiring Credit payments, you don’t need to satisfy a fall in turnover test. All you need to do is complete three steps:

• Register – via ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
• Nominate your eligible additional employees – by running payroll events through your Single Touch Payroll (STP) enabled software by 27 April 2021.
• Claim payments – using ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.

You can register at any time until the scheme ends. Please get in contact if you have any questions.

Key Lodgment and Payment Dates for Businesses:

21 March

• February monthly activity statements – final date for lodgment and payment.

31 March

• Lodge tax return for companies and super funds with total income of more than $2 million in the latest year lodged (excluding large/medium taxpayers), unless the return was due earlier. Payment is also due by this date.
• Lodge tax return for the head company of a consolidated group (excluding large/medium), with a member who had a total income in excess of $2 million in their latest year lodged, unless the return was due earlier. Payment is also due by this date.
• Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more, excluding large/medium trusts. Payment is due as advised on their notice of assessment.

It’s time to review your fringe benefits

The fringe benefits tax (FBT) year ends on 31 March. That means it’s time to review the benefits you’ve provided to your employees for the last 12 months and work out which of those attract FBT.

Examples of fringe benefits include:

• private use of work cars
• entertainment (e.g. concert tickets)
• reimbursement of employees’ expenses (e.g. school fees)
• salary sacrifice arrangements.

Over the past year there have been many changes and restrictions due to COVID. To adapt, you may have provided your employees different benefits to those you usually provide, and these may be exempt from FBT.

Generally, you do not need to pay FBT for:

• items provided to employees to enable them to work from home (e.g. laptop or portable device)
• emergency accommodation, food and transport
• emergency health care.

You can find out more about when it is (and isn’t) a fringe benefit here and read about the FBT COVID changes here.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business, we would love to hear from you.

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